A share certificate, which is produced and issued by a company, certifies on a certain date that a person is the registered owner of shares in that company. The key information shown on the certificate includes the name and address of the shareholder, the class of shares and number of shares held.
Share certificates are documents issued by companies that sell shares in the market. A shareholder receives a share certificate as a receipt of his or her purchase and to reflect ownership of a specified number of shares of the company.
One thing you may not have considered is the value of the certificates as collectibles. If they are rare or unusually ornate and would look eye-catching when framed, they may be worth selling to collectors.
What are the numbers on a stock certificate?
Certificate Number and Share Number
The top of your certificate identifies the certificate number and number of shares being issued. If this is the first stock certificate being issued by the company, then the certificate number should start at 1 or 0001.
How do I verify stock ownership?
In the digital age, you can prove stock ownership without holding a physical certificate.
A stock certificate must contain several pieces of information:
- The corporation’s name and incorporation date.
- The name of the investor.
- The issue date of the stocks.
- How many shares the investor owns.
Every certificate shall be sealed with the seal and shall specify the number, class and distinguishing numbers (if any) of the shares to which it relates and the amount or respective amounts paid up thereon.
The form of a company’s share certificates is usually governed by the company’s articles, which typically require a share certificate to specify the number and class of shares to which it relates, the nominal value of those shares, the amount paid up on them and any distinguishing numbers assigned to them.
After the incorporation of the company, the company needs to issue the share certificates within two months from the incorporation date. Where additional shares are allotted to the new or existing shareholders, the share certificates should be issued within two months from the allotment date.
Sebi has now mandated that after 5 December 2018, no transaction for transfer of securities of a listed company, at a stock exchange or as an off-market transactions between buyers and sellers, can happen in physical certificate form.
First, look for any signs that suggest the stock certificate is still valid. A valid stock certificate bears the name of the beneficiary. Also, all seals and signatures should be undamaged. In other words, there should be no hole punches or stamps over any of the seals or signatures on the certificate.
The value of a share printed on the share certificate is called face value. Face value is also known as par value. It is determined when the shares are issued by the company depending on the capital the company wished to raise.
Contact the company you’ve invested in and ask for the investor relations department. Identify yourself, then inquire when the stock certificate was registered to you, and when it was mailed. The company should have a complete record of this transaction and should have tracked the certificate.
How do I redeem old stock certificates?
Take the certificate to a notary public, and sign it in the notary’s presence. Send the stock certificate to the transfer agent by certified mail along with any required documentation of your ownership rights.
You can trace other lost shares by contacting the three main share registrars: Link Asset Services (Linkgroup.eu or 0371664 0300); Computershare (Computershare.com/uk); and Equiniti (Equiniti.com or 0371 384 2030).